Correlation Between EBEST Investment and Mobase Electronics
Can any of the company-specific risk be diversified away by investing in both EBEST Investment and Mobase Electronics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining EBEST Investment and Mobase Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EBEST Investment Securities and Mobase Electronics CoLtd, you can compare the effects of market volatilities on EBEST Investment and Mobase Electronics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in EBEST Investment with a short position of Mobase Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of EBEST Investment and Mobase Electronics.
Diversification Opportunities for EBEST Investment and Mobase Electronics
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EBEST and Mobase is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding EBEST Investment Securities and Mobase Electronics CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mobase Electronics CoLtd and EBEST Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on EBEST Investment Securities are associated (or correlated) with Mobase Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mobase Electronics CoLtd has no effect on the direction of EBEST Investment i.e., EBEST Investment and Mobase Electronics go up and down completely randomly.
Pair Corralation between EBEST Investment and Mobase Electronics
Assuming the 90 days trading horizon EBEST Investment Securities is expected to under-perform the Mobase Electronics. In addition to that, EBEST Investment is 1.1 times more volatile than Mobase Electronics CoLtd. It trades about -0.03 of its total potential returns per unit of risk. Mobase Electronics CoLtd is currently generating about 0.14 per unit of volatility. If you would invest 139,200 in Mobase Electronics CoLtd on October 24, 2024 and sell it today you would earn a total of 6,300 from holding Mobase Electronics CoLtd or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EBEST Investment Securities vs. Mobase Electronics CoLtd
Performance |
| Timeline |
| EBEST Investment Sec |
| Mobase Electronics CoLtd |
EBEST Investment and Mobase Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EBEST Investment and Mobase Electronics
The main advantage of trading using opposite EBEST Investment and Mobase Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EBEST Investment position performs unexpectedly, Mobase Electronics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mobase Electronics will offset losses from the drop in Mobase Electronics' long position.| EBEST Investment vs. Samsung Electronics Co | EBEST Investment vs. Samsung Electronics Co | EBEST Investment vs. Naver | EBEST Investment vs. SK Hynix |
| Mobase Electronics vs. KB Financial Group | Mobase Electronics vs. Shinhan Financial Group | Mobase Electronics vs. Hana Financial | Mobase Electronics vs. Woori Financial Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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